Sox-Agro

THERE IS AN ARGUMENT FOR HIGHGER LONGTERM CORN PRICES.

2017-10-21T21:45:00.004+01:00

There’s no shortage of debate in the corn market.
What is the likelihood of prices moving higher or lower from current levels (near $3.50 December futures)?

The glass-half-full or glass-half-empty theory is an economic philosophy that echoes an argument for price directional sentiment.

The variables that analysts measure are (in theory) the same and, therefore, open to interpretation for which direction prices are most likely to move.

The glass-half-empty crowd is negative on prices, while the glass-half-full crowd is friendly to prices.
The glass-half-empty argument is that big inventories left over from last year, good yield results this year, and harvest will keep pressure on prices.

The glass-half-full crowd, however, may look at a different set of variables and offer more of a long-term perspective.

In this perspective, we will look at the glass-half-full theory. When examining variables that move prices downward, it’s difficult to come up with much of a negative argument than is not already factored into the current market price.

From a price support rationale, probably the most supportive variable is that corn is currently priced at a level where most producers are losing money. Typically, producers are not anxious to give away their crop this time of year. Once harvest is complete, unpriced inventory is usually buttoned up tightly in storage and not likely to move until prices recover.

In addition, a supportive argument for higher corn prices is that the USDA has significantly reduced expected exports, down 443 million from last year’s 2.293 billion.

Is this too much of a reduction? One has to wonder why we would see such a reduction when the U.S. dollar is trading near a two-year low.

Just as important, world demand is likely to exceed world production this year. The USDA is also forecasting a large Southern Hemisphere crop. Any hiccup with Argentina or Brazil production, and U.S. export activity could quickly rebound.

Since the 2012 drought-shortened crop, five years of large production and low prices have created a large demand base, both domestically and worldwide.

Bottom line, even though carryout is adequate, there’s not room for error for corn production in the U.S. or elsewhere. Once the demand ship sails, the only thing likely to make it change course is higher prices.

From a chart/technical view, corn futures have recently posted two very friendly price signals, called bullish key-reversals. One on August 31 and one on October 12, the day of the latest USDA Supply/Demand report.

Managed money is significantly net short futures by over 140,000 contracts. With a lack of farmer selling on price setbacks, it is likely they will be covering (buying back) these positions by late fall.
End-users are in a position to purchase long-term needs with prices currently at their lowest level for the year.

An additional argument for the glass-half-full supporters is that the odds don’t favor continued record (or near-record) production, both domestically and worldwide. Weather issues will sooner or later adversely affect crop production.

Additionally, with corn prices generally below the cost of production availability of capital to finance, high producing crops could be jeopardized. That is, unless prices rally.

If you have questions or comments contact Top Farmer at 1-800-TOPFARM, ext. 129.
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BY BRYAN DOHERTY.

PRESERVING A 250 YEAR FAMILY FARM LEGACY.

2017-09-17T15:15:00.002+01:00

Farmer and former Maryland Secretary of Agriculture Roger Richardson and his family have farmed on Maryland’s Eastern Shore since 1767. They remain steadfast about ensuring the land stays healthy and productive for the next 250 years.

The family legacy began on 60 acres, primarily woodlands. Little by little, the farm has grown to more than 3,000 acres. Richardson, 81, is the ninth generation of his family to steward the operation. Along with his daughter and son-in-law (the 10th generation) and grandsons (the 11th generation), Richardson’s family grows corn, soybeans and wheat on land in three southeastern Maryland counties, surrounded by water on three sides.

He is a staunch proponent of Maryland agriculture and farmers’ dedication to producing quality food, feeding the world and protecting the environment.

“The first environmentalists were farmers,” Richardson says. “They understood more than anyone else that if you don’t take care of the land, it won’t take care of you. The land is the resource that has been good to our family for 250 years. We don’t take that for granted.”

Managing the different soil types, especially the abundant sandy soils, of Maryland’s Eastern Shore is challenging, Richardson admits. Switching to no-till helped minimize soil erosion and reduce production costs, but managing nutrients was difficult until he started using N-Serve® nitrogen stabilizer.

“You can’t see it, but we know that if nitrogen is not put deeply enough into the soil, especially sandy soils, it will leach and vaporize,” Richardson says. “N-Serve is a big help in stopping that.”
Given current commodity prices, controlling costs also is important.

“You have to closely watch expenses with any crop, but nitrogen is an asset you need to raise corn,” Richardson says. “N-Serve will lock it (nitrogen) in. It’s invisible, which makes it difficult to give a perfect answer to quantify yield benefit, but we feel strongly it has helped, especially last year with all the rain. We had some of the best corn yields we’ve ever had.”

Richardson is pleased with how well N-Serve® nitrogen stabilizer works to keep nitrogen in place for corn uptake. He also knows it’s the right thing to do to protect water quality and his family’s farming legacy.

“If you want to increase yield, nitrogen is the key to that, and N-Serve is the key to keeping nitrogen where it should be,” Richardson says. “I also like that N-Serve helps protect our precious natural resources. We consider N-Serve an investment, not just for yields, but also to help sustain this land for another 250 years.” BY DOW AGROSCIENCES.

MEXICO MULLS PORK AS RESPONSE TO U.S NAFTA PRODUCE PROPOSAL.

2017-09-17T15:05:00.003+01:00

MEXICO CITY, Sept 15 (Reuters) - Mexican negotiators are working on a response to informal U.S. proposals to include protections for fresh produce in the re-negotiation of the North American Free Trade Agreement (NAFTA), two people briefed on the proposals said.

U.S., Canadian and Mexican delegations finished a second round of talks last week to renegotiate the 23-year-old treaty, which U.S. President Donald Trump has threatened to abandon if he could not get a better deal for U.S. workers.

One suggestion U.S. negotiators raised prior to the first round of talks in Washington last month was to protect certain products by making it easier for U.S. seasonal produce growers to launch anti-dumping cases against Mexico, the people said, citing a presentation made by Mexican officials after the Washington talks.

Mexico is looking at creating its own list, that might include pork, in case Washington formally proposes to give seasonal fruit and vegetable farmers added protection, the people briefed on the matter said.

Mexican negotiators are studying the inclusion of pork legs in its counterproposal, including possible limits on the volume of U.S. exports to its southern neighbor, the people said.

The legs account for the bulk of Mexico's pork imports from the United States and are used to make some of the country's most popular dishes, like tacos al pastor and carnitas.

Some Mexican agricultural leaders have said that dairy and chicken could also be deemed sensitive, though those products were not mentioned by the sources briefed on the proposal.

In its NAFTA negotiating objectives published in July, the Trump administration said it would seek a "domestic industry provision for perishable and seasonal products" in trade cases. Since then the issue has not come up in official statements and it was unclear whether the idea was brought up again in the latest round of talks.

However, the possibility of a tit-for-tat response by Mexico to a potential U.S. proposal to limit fresh produce trade highlights the risks of granting exceptions to selected interests. Several U.S. retail, restaurant and agriculture groups flagged such risks last week in letters sent to Trump administration officials.

NAFTA gradually eliminated nearly all tariffs for goods from the three countries. But disputes over certain sectors, such as sugar, have led to negotiated agreements establishing regulated trade in the form of minimum prices and export limits.

Mexican officials have repeatedly said NAFTA's aim should be to increase, not limit market access. New seasonal produce protections that could more easily curb Mexican fruit and vegetable exports but also invite retaliation, went "against the interest of free trade," said Raul Urteaga, head of international trade for Mexico's agriculture ministry.

Urteaga told Reuters there have been no proposals "so far" from Canadian or U.S. negotiators to designate certain sensitive products.

Bosco de la Vega, president of Mexico's National Agricultural Council, an influential private sector chamber representing farmers interests to the government in NAFTA talks, told Reuters that existing Chapter 19 dispute resolution mechanism was sufficient to resolve allegations of illegal dumping or health safety concerns.

U.S. companies with production on both sides of the border said granting special protection to produce growers in the United States' southeast over the rest of the industry would limit U.S. consumers' access to affordable produce.

"The proposal to put temporary tariff barriers to protect one sector will lower vegetable consumption," said Carlos Visconti, CEO of Red Sun Farms which has greenhouses in Mexico and the United States, during the NAFTA round in Mexico.

In Mexico, pork farmers have similar grievances to U.S. growers of tomatoes, complaining their U.S. rivals dump into Mexico cheap cuts, such as pig legs, that are less in demand in the United States.
Apples and potatoes, which are major U.S. exports to Mexico, are also caught up in battles between the two countries, with Mexico using health concerns to slow imports.

Total U.S. exports of pork legs to Mexico reached some 690,000 tonnes last year, or nearly 80 percent of total U.S. pork shipments to its southern neighbor, according to data from Mexican pork association OPORPA.

Overall, Mexico relies on imports for about 44 percent of domestic pork consumption, which last year reached about 2.5 million tonnes. Before NAFTA, Mexico produced about 90 percent of the pork it consumed. BY David Alire Garcia.

STARTING A POULTRY FARM, AVOIDING PITFALLS.

2017-09-17T14:56:00.003+01:00

Starting poultry farming in Nigeria is an ideal business to venture because of its lucrative turnover and huge consumption rate of chicken products in Nigeria.

At the moment there exists a huge market potential for chicken and poultry products in Nigeria given the high rising population. Out of the needed annual 200 million birds to meet demands, only about 140 million birds are produced annually, creating a huge gap of over 60 million birds annually.

Poultry farming has become one of the most important aspects of agriculture in Nigeria. It creates business opportunities for entrepreneurs, provides employment for job seeking citizens and brings in a lot of income for families.

Unfortunately some poultry farmers end up losing greatly after starting up their farm, this is simply because they lack basic knowledge on what it takes to make good yield, and therefore end up getting it all wrong.

Most new and prospective investors lack proper information and investment knowledge to decide if they should invest in Broilers or Layers. For others they clearly lack the informed knowledge of why they should start with day olds as against point of lays.

The more knowledge and poultry set up tips and tricks you acquire, the more successful your poultry business in Nigeria will be.

To set up a profitable poultry farm, certain factors must be put into consideration as well as the acquisition of basic knowledge, some of these include;

Different Breeds of Chicken, their advantages and disadvantages as well as which is more profitable.

How much funding to take off

Poultry / Livestock Insurance (Very necessary)

What number of chicks are considered sufficient

Day old or Point of Lay (Their advantages and disadvantages)

Quality of Chicks (Especially day old)

Identifying quality chicks.

Pen set up (How to save money when starting by choice of equipments)

Suitable location for the pen

Appropriate spacing of the chicken pen to reduce overcrowding.

Selection of best materials for chicks

Vaccination and timing (Very important)

Temperature regulation (Very crucial)

How to maximize profit by using local feeds formulation (very crucial)

Types of feed given to the chicken at every growth stage

Feed timing

Effective management of various areas, such as changing the food or water in the event of fecal contamination which lowers the risk of disease

Enhancement of egg production for layers

Debeaking of chickens to avoid pecking

Water treatment

Identifying your target Market before set up (Very important)

Are you interested in investing in poultry farming? Business Plan? Guideline, Farm Set Up & Management? BY AGRONEWS.

FARMERS PANIC OVER MAIZE IMPORT.

2017-08-12T20:29:00.001+01:00

The reported approval given to some companies to import maize will crash the price locally and make its production unprofitable, farmers across the country have said.

The local farmers’ fears were premised on the alarm raised by Katsina State Governor Aminu Masari and Senator Adamu Aliero last week that a ship laden with 50,000 tons of maize had recently arrived Nigeria.

Masari and Aliero reportedly indicted the Minister of Finance Kemi Adeosun and Agriculture Minister Audu Ogbeh for granting license to importers to bring in maize from Brazil into the country.

The duo made the accusation in Kebbi state during the APC governors’ working visit to the state led by the Governor of Imo state, Rochas Okorocha.

Masari alleged that Ogbeh and Adeosun were responsible for the 300 metric tons of maize imported from Brazil to Nigeria.

Aliero, a onetime governor of Kebbi State said, “We have it from a reliable authority that your ministries issued the licenses to them. This will not help our local farmers. We have agreed that there should not be the importation of any grain into the country.” The two ministers, however, denied the allegation.

Alhaji Nuhu Aminu, Chairman of the Kaduna State chapter of All Farmers Association of Nigeria (AFAN) told Daily Trust that this is coming at a time when farmers have heeded the call of President Muhammadu Buhari to go back to the farm and that they had invested heavily in agriculture, with little or no subsidy from the government.

He said selling a 100kg bag of maize below N8, 000 would be disastrous and will deter farmers from cultivation.

‘Implication for farmers would be huge’

The National President of AFAN, Arc Kabiru Ibrahim, said the implication for farmers would be huge. He said the goal of the administration was to discourage the importation of what can be produced in Nigeria.

“If we open the door to importing all those things we can produce, it’s not good for us,” he said.

A maize farmer in Sabon Wuse, Niger State, said the increase in the price of maize per bag informed the decision of many farmers to go into farming this year, warning that any attempt to open it to importation will crash the price and make it unattractive to its growers nationwide.

“When maize was sold between N4,000 to N5,000 per 100kg bag, many farmers were not growing it for commercial purposes because they can’t make a profit. But when the price jumped up to between N15,000 t0 N17,000, many farmers turned to it and kept many into the production line,” he said.

He warned that any attempt to import the produce will crash the price and deter farmers from growing it.

The Buhari administration has set a target of 20 million metric tons for Nigeria from the local requirement of 15.5 million tons.

Daily Trust findings have shown that a bag of 100kg of maize sells from N15, 000 to N19, 500 across various markets in the country.

The farmers feared that if maize is imported massively into the country, it will not only crash the market prices of the product but it will erode the gains made in the sector in last two years.

The Federal Ministry of Agriculture and Rural Development said the national demand for maize is estimated at 15.5 million metric tons, while current domestic production stands at 10.5 million metric tons, leaving a demand gap of 5 million annually.

In his response, Chief Ogbeh said: “If I had the power, I would have stopped the importation of goods into Nigeria 30 years ago. I don’t know anything about it. My ministry doesn’t know anything about it. It is the responsibility of Customs to stop them.”

Adeosun said, “I don’t know anything about it. One NGO approached us to import drugs for IDPs and we told them that they should buy in Nigeria.”

Companies importing corn pay 5% duty – Customs

But when contacted, the Nigeria Customs Service (NCS) confirmed that some companies often make bulk importation of corn and that the Service ensures it collects five per cent as the duty rate.

The Public Relation Officer at the headquarters, Joseph Attah said: “I can confirm to you that a number of companies do bulk importation of corn at five per cent duty rate.”

Also, the Director of Information, Ministry of Finance, Salisu Na’inna Danbatta referred our reporter to the comments made by the Minister Adeosun last week at the FG-PGF Parley in Kebbi, where she promised to look into the issue of the importation of grains in collaboration with the ministry of agric.

However, a source at the Nigerian Customs Service told our reporter that maize and other grains are not on the import prohibition list or even among the 41 items that the CBN denied access to forex from the official sources.

The source said maize, like other grains, has been coming through the sea in large quantities into the country in recent past because the country has no capacity to meet the local demand in those days. He said mostly the imports are for industrial uses, not household.

But he noted that with the recent move by the federal government to encourage local producers and grow agric-based revenue, there should be some urgent measures to protect the local farmers.

The source said training on storage of such grains and preservation is needed and standardization and specification compliance must be given priority in order to get the attention of the buyers. AGRONEWS.

BUSINESS OF AGRO COMMODITIES AND EXPORT WORKSHOP, REGISTER TO ATTEND.

2017-08-12T20:11:00.003+01:00

Agro News Nigeria will be hosting an August edition of the Agro Commodities Investment, Export and Foodstuff Export Training Workshop in Lagos on the 26th August, 2017.

The last edition of the workshop was held in Lagos in February 2017.

The Agro Commodities Investment and Export workshop is aimed at educating prospective Agro commodities investors on how to invest in Agro commodities Investment and Export; (Ginger, Hibiscus, Zobo leaf, Soybean, Sesame Seed, Shea butter, Raw Cashew Nut, Palm Oil. Palm Kernel and Palm Kernel Oil)

Foodstuffs Export and Guideline

Featuring;

* Agro Commodities Sourcing, Pricing, Measurements and Standards

* Local Foddstuff Export Guideline

* How to Make Money Trading and Investing Locally In Major Agro Commodities.

* Export Costs Analysis and Profitability Analysis

* Making a Trade Contract

*Export Documentation, Processes, Specifications

* Foodstuff Export Procedure

*How you can invest in each Agro commodity.

*Making money through storage.

* How to allocate money round year in different commodities for maximum profit.

*Secrets of each trade.

* Quality Determination.

*Export opportunities (key)

* Local Market Trading Opportunities

* Processing Opportunities.

* NEXIM Export Stimulation loan and procedures

* Export Financing Opportunities.

Date; 26^th August,2017.

Venue; Chemline Event & Training Centre,7 Obasa Road, Off Oba Akran Ikeja, Lagos

Time: 9;30am to 4;30pm

Cost; N20,000.

Those interested can register and attend. AGRONEWS.

WHY KEBBI DRY SEASON RICE FARMERS RECORDED HUGE LOSS.

2017-08-12T20:00:00.003+01:00

This year’s dry season rice farming in Kebbi State does not seem to be as profitable to farmers as last year’s when many farmers in the state claimed they recorded bumper harvest and huge profit.

Their story is different this year as some of them are already lamenting huge losses they incurred due to poor harvest.

Some of the farmers who spoke to our correspondent said they were able to produce about 900 to 1000 bags of paddy during last year’s rice harvest. They however, lamented that they could only produce about 50 to 100 bags of paddy during this year’s harvest.

The farmers attributed their loss to the variety of rice seeds, poor weather, wind, flood, and lack of fertilizer as well as experience on the part of some of them among other challenges.

Alhaji Kabiru Sani Giant is one of the successful rice farmers at the River Niger valley in Bagudo area of the state with an expansive rice field of over 15 hectares. During last year’s harvest he was able to produce 930 bags of paddy. However, he told our correspondent that after this year’s harvest he only got 148 bags of paddy.

While speaking to our correspondent on the poor harvest he recorded this year, he said, “There are big differences between last year and this year’s harvests. One of the reasons responsible for the poor harvest many of the farmers recorded this year is the fact that many of them are new in rice farming. They are ignorant of what they need to do to achieve high yield in rice production.

“I started planting my rice late February this year. However, it grew well and I was expecting about 800 to 900 bags of paddy. Unfortunately there was a terrible wind accompanied by heavy rainfall which caused flood in my farm for over one week. Because of this we could only harvest the little rice that was left in the farm. Many other farmers also suffered this fate. I know of those that can produce about 3,000 to 4,000 bags of paddy rice but were also affected by the flood. If not for the wind and flood that washed our rice away we could have produced more rice in Kebbi State than we produced last year.”

According to him, after planting the rice, water became a problem to some people, saying it is expensive to maintain a rice farm during the dry season.

“From the day I started cultivating my rice farm to the day I harvested it I spent nothing less than N2.5 million on watering it. That does not include what I spent on labour during planting, removing of weeds, harvesting, trashing and bagging the rice. That amount was only for fueling the pumping machines. By the time I calculated the money I had spent I realized I had spent over N5 million.

“Unfortunately I lost everything to the wind and flood. I could only get 148 bags compared to the 930 bags I got after last year’s harvest. More than nine hectares out of my 15 hectares of rice field was submerged and these are the areas we were expecting to have bumper harvest. Where we got the 148 bags was not more than three hectares.

I don’t want to go to government because I don’t want to be seen as begging for money. It was my money I used for the farming to maintain myself and my family. If they want to assist us they can set up a committee to go to the farms and see the losses we suffered.”

Another farmer, Aliyu Abdullahi, at Duku area of Birnin Kebbi, said he could only get two bags of rice from his three hectares of rice farm.

“It was a total loss for me. I spent over N1million cultivating the rice farm but I could only get two bags after harvesting it. I was not the only farmer that incurred losses many others suffered even more serious losses. Many of those who got 50 to 100 bags of rice last year could only get seven to eight bags this year. Unfortunately a bag of rice is currently sold at N6,000 to N7,000.”

In the same vein, a farmer in Bunza area of the state, Saadu Muhammed, who said it was his first time to venture into dry season rice farming, said, “I cultivated one hectare of rice field. I expected to get about 100 bags of paddy after harvest but all I could get is eight bags. It was a complete loss for me,” he lamented. AGRONEWS.

NIGERIA SPENT N428 BILLION ON WHEAT, SORGHUM IMPORTS IN 2015- CBN GOVERNOR

2017-07-20T17:27:00.002+01:00

Kano — The Governor of Central Bank of Nigeria (CBN), Mr. Godwin Emefeile, Tuesday disclosed that over N428 billion was expended on the importation of wheat and sorghum in 2015 alone.

Godwin said the huge bills on the importation of these products informed the decision of the apex bank to boost and sustain the local production of agricultural products such as rice, wheat, cassava fish and poultry, among others.

Speaking at the inauguration of sorghum milling plant at Northern Nigeria Flour Mills Company held in Kano, the CBN governor, who was represented the Deputy Governor, Corporate Service Directorate, Alhaji Suleiman Barau, disclosed that 513 projects across the country had been financed by Commercial Agricultural Credit Scheme (CACS), saying that a total of 604 projects had equally been financed under Real Sector Refinancing Project.

He said these interventions were the outcome of the collaboration between the bank and the Presidential Task Force on Food Security, aimed at boosting agricultural production, employment and wealth creation.

According to him, CBN would continue to support any venture that would save the nation foreign exchange in which the Northern Nigerian Flour Mill Plc had demonstrated a strong commitment to pursue.

In her remarks,the Minister of State, Industry, Trade and Investment, Hajia Aisha Abubakar, said the inauguration of the milling plant was unique in the sense that it would serve as a real boost in sourcing raw materials locally and would inadvertently have positive impacts on local farmers /out growers.

Abubakar also said the inauguration of the plant directly aligned with the vision of the administration’s Economic Recovery and Growth Plan (ERGP) designed to promote and sustain an inclusive growth in the implementation of Nigeria Industrial Revolution Plan(NIRP).

She explained that the plan also focused on areas in which Nigeria has comparative advantage that would guarantee competiveness in the global market and increase manufacturing contribution to GDP in the next five years.

Abubakar said the plan, which was presently being implemented, would strategically unlock bottlenecks militating against the growth and development of the industrial sector adding that government was also reducing the encumbrances that were affecting industrial development.

The Chairman of Flour Mills of Nigerian (FMN), Mr. John Coumantaros, said in the coming planting season, FMN planned to engaged a network of out growers and contract farming arrangement to source over 30,000 metric tones of sorghum wile 10,000 farmers would also be engaged by the company.

The commissioned a sorghum milling plant estimated at the cost of N2 billion with the aim sourcing its raw materials locally. BY AGRONEWS.

BANK OF INDUSTRY COTTAGE LOAN, HOW TO APPLY.

2017-07-19T20:04:00.003+01:00

About the fund

Nigeria is richly endowed with abundant agricultural products available in every state of the federation.

However, limited capacity for processing and preservation, results in huge losses and wastages.

In a bid to tackle this problem, BOI has established a Cottage Agro-Processors Fund to support the establishment of cottage agro processing plants that will produce food products and raw materials for industries within and outside the Staple Crop Processing Zones (SCPZs) across Nigeria.

The Fund will be accessed by Limited Liability Companies, Enterprises and Cooperative Societies engaged in the processing of agricultural products either into finished food products or raw materials for industry or for the export market

CAP Fund –Products/ Sectors supported

CAP Fund- Products/ sectors supported
S/N	Agric Products	Derivatives
1	Cassava	Cassava Flour, Chips, Starch, Garri, Fufu, Ethanol
2	Oil Palm	Palm Oil, Palm Kernel Oil, Palm Kernel Cake.
3	Rice Paddy	Rice, Flour.
4	Groundnut	Groundnut Oil, Groundnut Cake
5	Yam	Yam Flour, Chips
6	Maize	Corn Flour, Starch, Livestock Feed.
7	Sorghum	Sorghum Flour, Syrup, Sorghum Brewers Grain.
8	Aquaculture	Smoked Fish, Fish Fillet.
9	Livestock	Leather Products, Poultry, Milk, Yoghurt, Butter.
10	Cocoa	Cake, Butter, Powder.
11	Shea nut	Shea Butter For Cosmestics, Confectionary And Pharmaceuticals
12	Plaintain	Flour, Chips
13	Cashew	Cashew Nuts
14	Tomato	Tomato Paste, Tomato Ketchup

Cottage Agro-Processors (CAP) Fund

9% Interest rate

N10 million single obligor limit

5 years tenor (Inclusive of 6 months moratorium)

1% processing fee (payment at approval)

Parties to the fund

Bank of Industry

Partnering Bank

The customer

Accredited Equipment Suppliers and Valuers

Bank of Industry

Provides the long term loan

Manages the fund

Equipment procured in BOIs name and revert to the customer upon liquidation

Partnering Bank

Provides working capital

Tripartite agreement with BOI and customer to sweep repayments to BOI

The customer

10% equity contribution

Select equipment from BOI accredited suppliers

3-year equipment maintenance agreement with the supplier

Factory constructed for new project and modified for existing project Sign the Tripartite Agreement authorizing the Partnering Bank to sweep loan repayments into BOI’s account based on the Loan Amortization Schedule

Accredited supplier

Supply, installation and commissioning of the equipment

2-year warranty for the equipment

3-years equipment maintenance agreement with the customer

Provide standard factory layout to accommodate the equipment to be supplied

Provide initial training for the customer on the operation of the equipment

If supplier is a fabricator, it must have Standards Organization of Nigeria (SON) certificate

Security arrangement

Debenture over assets of the company or lien over the equipment

Deposit of 10% equity into designated BOI account

Personal guarantee of promoters

Two (2) external guarantors to be backed by notarized net-worth statement acceptable to BOI

Referral Letter from a recognized Traditional Ruler / Local Government Chairman or LG Secretary/ Imam / Priest

Domiciliation of sales proceeds with the selected/accredited SME friendly banks. BY AGRONEWS.

EXPORT LOAN, HOW TO ACCESS NEXIM ESF FACILITY.

2017-07-19T19:47:00.002+01:00

NEXIM’S PRODUCTS & SERVICES – NEW EXPORT INTERVENTION SCHEMES

As part of efforts to arrest the declining trend in export credits and boost investments in the non-oil export sector, the CBN recently approved two funding schemes and appointed NEXIM as the Fund Manager:

N500 Billion Export Stimulation Facility (ESF) – Newly Introduced

Tenor of up to 10 years for project finance facility inclusive of moratorium of 2 years.
Working Capital / Stocking facility shall be for a maximum tenor of one year with the option of roll-over not exceeding twice
Maximum interest rate of 7.5% per annum for facilities with a tenor of up to three (3) and (9%) per annum for facilities with tenor of over three (3) years.

N50 Billion Export Rediscounting & Refinancing Facility (RRF) – Enhancement of existing N1.225 Billion RRF being operated by NEXIM from inception in 1991
- It is a rediscounting & refinancing window available to Commercial Banks for a maximum tenure of 360 days.
- Export bills / transactions shall be discounted / refinanced at an “all-in” rate of a maximum of 6% per annum with the Bank allowed a maximum spread of 3%.

ELIGIBILITY CRITERIA

The Bank’s facilities are available to any registered, creditworthy export Company/Cooperative Society, incorporated in Nigeria, registered with the Nigerian Export Promotion Council (NEPC).

REQUIRED DOCUMENTATION

Application Form
Certified True Copy of Certificate of Incorporation, Certified True copies of CO2 & CO7; and Memorandum & Articles of Association;
Current three year tax clearance;
Three (3) year Audited Accounts and most recent management accounts, where applicable
Feasibility Study/Business Plan including Projected Cash flow, P&L and
Board Resolution Authorizing Company to borrow and Letter of Authorization for NEXIM to seek information on Company;
Registration with NEPC;
Proforma Invoice; Export Contract or MOU and Evidence of past export(s) if any;
Valuation Report of the proposed security; BY AGRONEWS.

FG, NDDC MOVE TO REVITALISE ABADONED RICE MEALS.

2017-07-19T19:28:00.002+01:00

Ado Ekiti — The Minister of Agriculture and Rural Development, Chief Audu Ogbeh, has disclosed that the present administration under President Muhammadu Buhari will stop importation of rice in 2017.

Explaining the reason behind the policy, Ogbeh hinted that the country has enough internal production that can sustain home consumption and meet foreign exchange earnings that can guarantee diversification of the economy.

In order to further boost internal production of the commodity and enhance the country’s comparative advantages in rice and yam production, Ogbeh stated that the federal government will sign a memoranda of understanding with Afe Babalola University, Ado Ekiti (ABUAD) and Ekiti State Government in the two critical sectors.

He unveiled his ministry’s intention to supply ABUAD with 20 tonnes of rice seedlings in the next planting season to boost rice production internally.

The minister said these in Ado Ekiti at the weekend during a visit to ABUAD’s farm and Ekiti State government.

Ogbeh said the current economic recession being experienced under Buhari’s government has helped the federal government to think outside the box and had succeeded in bringing the deserved revolution to agriculture sector .

The minister assured Nigerians that the skyrocketing prices of foods in the country will soon crash, saying specifically that that of rice would happen within the next two weeks.

“Of recent, prices of diesel increased from N130 per litre to about N280 which makes the cost of a tractor to move up to N14 million from N7 million. The interest rate on every loan given to farmers also went up, so the aggregate of all these factors caused increase in the prices of food items.

“We are concerned with the plights of Nigerians. We knew that many are hungry but we are working round it because it doesn’t speak well of us that we are in government and people are hungry.

“But the major challenge is that Nigerians produced children more than other Africa nations put together and youths are not interested in farming and the question now is that, who will feed all these children?

“Nigeria has about 150million population and if these people can’t be fed with food, then they will be fed with anarchy and chaos,” Ogbeh warned.

The founder of ABUAD, Chief Afe Babalola (SAN), praised Buhari’s administration for bringing revolution to the country’s agriculture sector that had been neglected by successive governments, describing the current economic recession as a blessing in disguise.

“To support the federal government initiative, this university for the past three years has been holding the annual Afe Babalola Agriculture Expo (ABAFEX), where we give N1million to the best farmer in Ekiti and N250,000 to the best in 16 local governments.

“This year, we intend to hold rice summit with intention to expose Ekiti potential in the production of the commodity,” Babalola said. BY AGRONEWS.

FG TO PARTNER OSUN FOR MASSIVE FOOD PRODUCTION.

2017-07-19T19:18:00.001+01:00

The Federal Government has expressed readiness to partner with Osun State Government in the ongoing process of massive food production as a means of getting the nation out of the current economic recession.

The Minister of Agriculture and Rural Development, Chief Audu Ogbeh who stated this when he paid a courtesy call on the Osun State Governor, Ogbeni Rauf Aregbesola in Osogbo disclosed that Nigeria will by December this year stop the importation of rice due to massive rice production embarked upon by government.

Ogbeh said it is unfortunate that Nigeria is still spending billions of dollars on food importation, thereby calling for maximum collaboration and partnership between and among the various authorities to revamp agriculture.

The minister said the Federal Ministry of Agriculture has been restructured to meet the nation’s needs on food production so as to bring an end to all forms of food importation.

He said the purpose of the visit is to cement the existing relationship between the Osun State Government and the Federal Ministry of Agriculture on the need to achieve a better agricultural productivity.

Ogbeh attributed the current economic recession to the nation’s failure to harness her huge potential in agriculture.

Ogheh said Nigeria has gotten to a stage where her numerous God-given resources must be appropriately harnessed, saying the era of sole reliance on crude oil as a means of sustenance has gone.

The Minister said his ministry has meeting with relevant stakeholders to revamp the agriculture sector, a move which he said would go a long way in rescuing the nation out of poverty and unemployment.

He said the ministry has engaged in an extraordinary initiative to rid off the sector of her current challenges, saying no stone will be left unturned to bail the country out of her present predicament.

According to him, it is high time Nigerians, irrespective of socio-economic status, developed interests in whatever that can be use as alternative to crude oil whose era is almost disappearing. BY AGRONEWS.

FCT MINISTER THREATENS TO REVOKE ALLOCATIONS TO FISH FARM ALLOTEES.

2017-07-18T18:58:00.003+01:00

The FCT Minister, Malam Muhammad Bello has threatened to revoke allocations to Fish Farm allottees who fail to move to the farms within two months from today.

Bello, who said this when he visited the farms sited at Bwari Area Council on Friday in Abuja, noted that the allottees would forfeit the allocations at the expiration of the two months.

According to him, government cannot just allocate the farms to people who refused to make use of the facility.

He frowned at a situation whereby only four people out of 100 who got allocations were presently doing the business, a development he described as unacceptable.

The minister said if the allotees failed to occupy the farms by the end of the two months period given to them, the allocation would be revoked.

He also directed the allotees to make N5,000 available every month to pay for security and maintenance of the farms, adding that if the 100 allottees paid, it would amount to N500, 000 which should be sufficient to take care of the farms.

Bello also frowned at the level of farm houses being built within the estate while the fish ponds were not developed.

“The allotees should suspend building of such structures till they complete the ponds.

“Based on what is happening here and complains by the allotees that there is no water and road within the farms, I have suspended the construction of the roads from the budget.’’

The Bwari Fish Farm Estate is a government intervention that commenced in 2012 to encourage families to go into fish farming leveraging on the water resources available in the FCT as well as the enormous market.

This was based on the realisation that there was a huge gap between the demand for fish and supply of fish.

“So, I came in here as part of my general policy drive in ensuring that all good projects that are meant to be of immense benefit to the residents of the territory started by the previous administration are completed.’’

Bello assured that based on what he had seen and interaction with the members of staff, the project would go a long way in boosting fish production in the territory.

He also advised beneficiaries of the N-Power scheme posted to the farms to acquire training on fish farming to reach out to the secondary schools and communities around as most schools have Young Farmers Club to impact knowledge acquired. (NAN). BY AGRONEWS.

ARMY WORM: KANO FARMERS OUT OF DANGER.

2017-07-18T18:54:00.003+01:00

Kano wing of All Farmers Association of Nigeria (AFAN) has declared that farmers in the state are out of danger of army worm attack on farms.

State AFAN chairman Farouk Rabi’u Mudi disclosed this while addressing newsmen on the recent attack of army worm in the state.

He said the association was able to surmount the pestilence through collaboration with the state ministry of agriculture and other agricultural development bodies through constant sensitizations of farmers on method of addressing the worm attack on their plantations.

“When the worms came, they attacked a lot of plantations in Kano especially maize. However, with the last years’ experience on tomato we were able to educate the farmers on method through which such attacks will be controlled. I am happy to tell you tjhat presently Kano farmers are out of danger of the army worms attack. I must state here that, without support from the state government and many other development partners in agriculture, the situation would have been different,” said the state AFAN chairman.

Similarly, Malam Abdu Usman a farmer in the state said, it is early for farmers to celebrate as traces of the army worms are still visible in many farms. Malan Usman had attributed this to the economic constrains the farmers faces presently. BY AGRONEWS.

FAMINE LOOMS AS NEW DISEASE THREATEN FARM PRODUCE.

2017-07-18T18:50:00.003+01:00

The Coordinating Director of the Nigerian Agricultural and Quarantine Service (NAQS), Vincent Isegwu, has stressed the need to be on the watch out for viral diseases that are capable of destroying farm produce during the harvest season.

The diseases, according to him, are Cassava brown streak, maize nitant necrosis and coconut yellowing disease.

Speaking in an exclusive interview with LEADERSHIP Sunday in Abuja, he said “There are some diseases which are lurking in the corner which the country must be very aware of. They are so devastating; they are viral, which means they cannot be treated, and we need to prepare and face them squarely”.

“One is for Cassava and it is called Cassava brown streak disease. It can cause 100% rot of cassava tubers on the ground. Another is maize nitant necrosis which also causes complete devastation and does not even allow plants to mature. It withers, dries up and becomes unproductive and the coconut yellowing disease causes the foliage (leaves) to be dead so that all you see is the stem standing like a telecoms mast or electric poles

“And you can imagine anything of such devastation, 100% affecting our cassava which is a major staple in Nigeria. Maize is also our staple; we roast maize, cook maize, make ‘tuwo’ and even ‘akamu’. So, we cannot afford to be careless about these diseases coming into the country”.

Isegwu said the cassava brown streak disease is already in Rwanda, Uganda, Tanzania and Congo Republic and is moving from Southern to Central Africa.

His words: “So, we need to be careful so we don’t allow any cassava cuttings into the country, not from those countries and not from anywhere.

“Because they could come from such countries, enter another country before coming into Nigeria and you say no, it didn’t come from those Southern African countries but from the Eastern flank, not knowing that it transits through one of their West African neighbours or North African neighbours before coming down. So, we must not allow any vegetative cutting for cassava to enter the country, except we are very sure of the source and there is a pre-arrangement that such cottons have come for research or whateve”r.

The NAQS DG assured that presently, all the border stations are aware of this and are mounting surveillance for them. “But what we are doing now is to put a proposal to government of the cost implication for the monitoring to avert it. I need specialist training to be able to identify it or else when you see it, you will think it is a cassava mosaic disease which is not the case”, he added. BY AGRONEWS.

FARM MARKETS TRADE BELOW DAILY HIGHS, REMAIN STRONG TUESDAY.

2017-07-18T18:45:00.001+01:00

DES MOINES, Iowa -- On Tuesday, the CME Group’s farm markets come off their daily highs and remain well supported by crop-weather concerns.

At midsession, the September corn futures are 6¾¢ higher at $3.81¾, and December futures are 7½¢ higher at $3.95½.

August soybean futures are 10½¢ higher at $9.95; November soybean futures are 10½¢ higher at $10.08.
September wheat futures are 2¼¢ higher at $5.08.

December soy meal futures are $2.80 per short ton higher at $332.30. December soy oil futures are 0.34¢ higher at 33.78¢ per pound.

In the outside markets, the Brent crude oil market is $0.28 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 88 points lower.

Another heat wave will roll through the Midwest starting today with temperatures expected to near triple digits, as reported Tuesday.

Much of eastern Nebraska and Kansas, Iowa, Missouri, and Illinois are under excessive heat watches, warnings, or advisories starting today, according to the National Weather Service.

“Hot and humid temperatures are expected to build this week and linger through Saturday across the region,” the NWS said in a report on Tuesday morning. “Air temperatures will reach near the triple-digit mark by midweek, and heat indices may reach or exceed 105˚F. to 110˚F. each afternoon Wednesday through Saturday.”

Some cloud cover or spotty showers may provide some relief in limited areas, but it’s going to be extremely hot in the heart of the Corn Belt for the next few days, according to the agency.
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Monday’s Grain Market Review

On Monday, the CME Group continues to see little movement, aside from the soybean complex gaining slight strength.

At the close, the September corn futures finished 1¼¢ lower at $3.75, while December futures finished 1½¢ lower at $3.88.

August soybean futures closed 4¢ lower at $9.85; November soybean futures closed 4¢ lower at $9.97.

September wheat futures closed 4¾¢ lower at $5.06.

December soy meal futures settled $1.90 per short ton lower at $321.80. December soy oil futures closed 0.24¢ lower at 33.44¢ per pound.

In the outside markets, the Brent crude oil market is 51¢ per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 3 points higher.

Jason Roose, U.S. Commodities grain analyst, says that as the crop conditions go, so go the markets.
“The grains are trading lower today on a mixed weather forecast. With the majority of the crop going through pollination the next 10 days, Monday's USDA Weekly Crop Conditions Report will be watched closely after three weeks of lower ratings,” Roose says.

BY MIKE MCGGINNIS.

U.S FARMERS MAINTAIN OPTIMISM FOR A.G ECONOMY, BAROMETER REPORTS.

2017-07-18T18:35:00.001+01:00

The Purdue/CME Group’s June survey of 400 U.S. agricultural producers indicates producers feel their farm operations’ financial positions are stronger now than a year ago.

This shift in producers’ perspective is one reason the Ag Economy Barometer’s June reading of 131 was virtually unchanged from a month earlier. The Ag Economy Barometer, a producer-based sentiment index, has held steady for three months in a row and remains well above levels recorded prior to November 2016.

The shift in producers’ perspectives regarding their financial positions is part of a long-term trend, according to the Barometer’s results released last week. In June 2016, just 3% of survey respondents felt their operations were financially better off than a year earlier. That percentage increased to 10% last fall, then declined somewhat in early winter before rebounding to its current reading of 13%, the highest reading since we began surveying producers in October 2015.

A similar pattern emerges when examining the percentage of producers indicating their farms’ financial positions declined compared with 12 months prior. The percentage of farmers indicating that their financial positions were worse than a year earlier was 46% in June 2017, little changed from May’s 44%, but well below the 67% recorded as recently as February.

The shift in perspective compared with last summer is even more noticeable since 81% of respondents in August 2016 said their farm was financially worse off than the year before.
The long-term shift in producers’ attitudes about their operations’ financial conditions is likely reflective of several factors.

First, revenues on many farms increased as a result of record, or near-record crop yields in 2016. The revenue improvement was further supported by the fact that corn and soybean futures prices strengthened from late summer through early winter.

Second, production costs moderated for most crop operations compared with the prior year. Fertilizer prices in particular were weaker than a year earlier, helping to improve margins.

Third, as the long-term adjustment to tighter crop operating margins continues, farmland rental rates continue to adjust downward, helping to brighten the financial picture for many farm operations.

Looking Ahead to the Rest of 2017

In addition to the monthly questions measuring sentiment, the barometer survey also asks producers about the key drivers affecting their farms and the broad farm economy.

On the June survey, producers were asked to compare current expectations about their farm financial performance in 2017 to their initial budgets or plans.

Most producers (60%) indicated that current expectations are “about the same” as their initial expectations. However, for farm operations whose expectations changed, there was a turn toward “worse than” planned (28% was more common than “better than” budgeted (12%).

The number of respondents indicating they expect their 2017 financial performance will be worse than originally planned could be reflective of the difficulties some farms have experienced this spring with respect to planting and poor growing conditions, especially in the eastern Corn Belt. BY DAVID WIDMAR.

WITH HARVEST IN PROGRESS , KANSAS FARMERS REPORT ON SNOW- DAMAGED WHEAT.

2017-07-10T15:12:00.003+01:00

Despite the late blizzard that caused considerable concern about the Kansas winter wheat crop, farmers report that, overall, the crop looks better than expected.

Marc Ramsey, who farms near Scott City in western Kansas, received 14 inches of snow on April 30 that knocked down trees and wheat fields, as shown in the photo below. Surprisingly, he said that the snow may have helped more than it hurt.

“The moisture was badly needed and apparently the stems weren’t damaged badly enough across acreage to make a huge impact,” he says. “Some wheat is lodged, but it seemed to fill decently through the heat.”Ramsey is just getting started on wheat harvest, but he says test weights have been in the 58 to 60 range. “Yields were above average, but protein is in the 9 to 10 range, so nothing special there,” he adds. “Accounts from area farmers are saying you either have quantity or quality, but more often than not you don’t get both.”

Eric Sperber, manager of Cornerstone Ag, LLC in Colby about an hour north of Ramsey’s farm, heard similar comments from the farmers in his area.

“Most people were pleasantly surprised at the lack of impact from the snow,” he said during a report with the Kansas Wheat Commission. “One farmer had an early planted field that looked like a mess after the snow. It stood back up, but fell over again at grainfill. He wasn’t expecting much, but it ended up yielding 60 bushels per acre and over 60 pounds per bushel.”

An hour northeast from Colby in Norton, Kansas, Chris Tanner also got hit with the late-April snowstorm. “When the snow was laying on the wheat, I thought it was dead and done for,” said Tanner in the Kansas Wheat harvest report. “After that there was a little bit of a dry spell that wasn’t good for it, but it’s been pretty resilient. They say wheat has nine lives, but this crop is on its tenth or eleventh.”

He adds that condition has varied with test weights from 58 to 62 pounds per bushel and yields from 20 up to 80 bushels per acre. However, he says that variation is mainly based on planting date and wheat variety.

While hail and rain have slowed down winter wheat harvest in western Kansas, across the state winter wheat harvest is progressing almost right on pace with the five-year average with 73% complete compared to 72%, according to this week’s USDA Crop Progress Report. As far as the condition goes, the USDA reports that 47% is in good to excellent condition, 31% fair, 14% poor, and 8% very poor. This is on par with the rest of the country’s winter wheat crop – 48% is in good to excellent condition – but it is trailing last year’s crop when 62% was rated as good or excellent at this time.

Not surprising given the condition ratings, the USDA is predicting a lower yielding wheat crop compared with last year. According to the USDA’s Crop Production report, winter wheat yields for Kansas are forecast at 44 bushels per acre, down from 57 bushels per acre last year. BY JESSIE SCOTT

MISSOURI, ARKANSAS BAN DICAMBA USE.

2017-07-10T15:07:00.004+01:00

WASHINGTON, July 7, 2017 - Continued complaints over crop damage due to drift have led to Missouri and Arkansas temporarily banning the sale and use of dicamba products.

“Missouri Director of Agriculture Chris Chinn has issued a Stop Sale, Use or Removal Order on all products labeled for agricultural use that contain dicamba in Missouri,” the state’s ag department said Friday, citing more than 130 drift complaints this year alleging thousands of acres of damage.

The order says the state “has probable cause to believe dicamba-containing pesticide products are being used in violation” of state regulations requiring adherence to the EPA label or state pesticide laws.

The state’s order applies to all formulations of the herbicide, including Monsanto’s Xtendimax, DuPont’s FeXapan, and BASF’s Engenia. In Arkansas, the ban applies to Engenia, the only formulation the state approved for over-the-top use this growing season.

The Missouri order says that “older dicamba products are not labeled by (EPA) for in-crop post-emergent use in dicamba-tolerant cotton and soybean crops. EPA-approved labels for Xtendimax, Engenia and FeXapan warn all users to not apply the pesticide during a temperature inversion and to not allow the pesticide to drift onto desirable broadleaf vegetation because severe injury or destruction could result.”

“With only a small window left for application in this growing season, I understand the critical need to resolve this issue,” Chinn said. “I look forward to working with our farmers, researchers and industry partners to find an immediate solution.”

In Arkansas, the executive committee of the state’s Legislative Council allowed the proposed ban to move forward following a recommendation by the state’s Plant Board, which was then approved by Gov. Asa Hutchinson. The council is composed of a panel of state legislators.

The Associated Press reported that the executive committee took no action on the proposed ban, allowing it go into effect “unless a majority of the Legislative Council or its chairmen hold a meeting Monday to review the panel's decision.” Earlier in the week, the council approved an increase in fines for “egregious” dicamba misuse to $25,000.

Dicamba misuse complaints in that state totalled 596 in 23 counties as of today. BY AGRI-PULSE COMMUNICATIONS.

WHEAT FUTURES JUMPS OVERNIGHT, INVESTORS BULLISH ON SOFT RED FIRST TIME IN 2YEARS.

2017-07-10T14:36:00.001+01:00

1. Wheat Futures Jump as Weekend Plains Rains Disappointing

Wheat prices rose in overnight trading after some wet weather expected to offer some relief to parched spring crops in North Dakota was underwhelming.

Only small amounts of rain – about 0.25 inch in only a few counties in the state – fell on Sunday. Some forecasts had been calling for more widespread rains over the weekend.
The entire northern Plains where most spring wheat is grown in the U.S. has been extremely dry the past month, according to the National Weather Service. That’s left many investors, analysts and farmers wondering if there’s going to be much of a spring wheat crop this year.

Wheat for September delivery rose 13 ½ cents to $5.48 ½ a bushel overnight on the Chicago Board of Trade. Kansas City futures jumped 11 ¼ cents to $5.54 ¼ a bushel.

Soybeans also jumped overnight on concerns not only about the northern Plains bean crop but also the canola and palm crops globally. Canola and palm are competing oilseeds for soybeans.
Soybeans for November delivery added 19 ½ cents to $10.35 a bushel overnight. Soymeal rose $7.90 to $345.90 a short ton and soy oil futures gained 0.37 cent to 33.69 cents a pound.

Corn rose on the weather woes in the northern Plains as December futures added 8 ¼ cents to $4.13 a bushel overnight.

2. Speculative Investors Now Bullish Soft-Red Winter, Increase Net-Longs in Hard-Red Wheat

Money managers were bullish soft-red winter wheat for the first time since July 2015 and investors were net-long on hard-red winter futures by the most in at least six years as dry weather continues to plague the northern Plains.

Net-longs, or bets on higher prices, totaled 23,997 soft-red futures contracts in the week that ended on July 3, according to the Commodity Futures Trading Commission, the first time investors were bullish on the grain in two years.

Speculative investors were net-long by 54,574 hard-red winter wheat contracts last week, the biggest such position since at least 2011, CFTC data show.

Investors have been getting more bullish on wheat as dry weather in the northern Plains has likely led to spring-crop losses. About two-thirds of North Dakota is in some sort of drought while the rest is abnormally dry, according to the U.S. Drought Monitor.
Money managers were also less bearish on corn and soybeans.

Net-shorts, or bets on lower prices, in corn fell to 37,607 contracts, the lowest level in three weeks. In soybeans, net-short positions fell to 82,630 contracts, the lowest such position since the week ended on May 23, according to the CFTC.

The weekly commitment of traders report from the Commodity Futures Trading Commission shows trader positions in futures markets.

The report provides positions held by commercial traders, or those using futures to hedge their physical assets; noncommercial traders, or money managers (also called large speculators); and nonreportables, or small speculators.

A net-long position indicates more traders are betting on higher prices, while a net-short position means more are betting futures will decline.

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3. Red Flag, Thunderstorm Warnings Issued For Montana; Heat Indexes to Reach 107 in Midwest
Much of Montana likely will see an odd mix of hot and dry weather and potentially severe thunderstorms this afternoon.

A red flag warning indicating that it’s extremely dry and wildfires are imminent has been issued for much of central Montana until 11 p.m. today due to a combination of low humidity, gusty winds and lightning from “dry thunderstorms,” according to the National Weather Service.

Further east, some scattered thunderstorms are likely that could bring rainfall, hail and damaging winds, the NWS said in a morning report.

Temperatures this week in most of the northern Plains will near 100 degrees, the agency said.
In the Midwest, a heat advisory has been issued for an area encompassing much of southeastern Nebraska, southwestern Iowa, northeastern Kansas and northwestern Missouri.

Temperatures this week will be in the mid-90s with heat indexes as high as 107 degrees through Wednesday, according to the NWS. BY TONY DREIBUS.

THE 4TH OF JULY BY THE NUMBERS.

2017-07-02T18:37:00.006+01:00

Americans love food, and eating is their favorite way to celebrate our nation’s Independence Day, according to an annual survey conducted by the National Retail Federation (NRF). The most popular way to celebrate the Fourth of July is to cook out, barbecue, or host a picnic. The NRF says 65.5% of Americans will do just that in 2017 and will spend $7.1 billion on food items for the holiday.

Americans will eat 150 million hot dogs on July 4th alone, according to the National Hot Dog and Sausage Council (NHDSC). Interestingly enough, 61% of Americans prefer beef hot dogs, 12% like pork hot dogs, and 7% prefer turkey, the NHDSC says.

According to an informal poll that we conducted on Twitter, 52% of our followers will be grilling beef over the holiday, 10% will be grilling up pork, 5% will grill chicken, and 33% will throw a combination of the three on the grill to celebrate.

To give you an idea of just how much meat is grilled between Memorial Day and Labor Day, in 2016 Americans grilled $6,816 billion worth of beef, $4,284 billion worth of pork, and $3,882 billion worth of chicken during that period.

Traveling Americans

This year, a whopping 44.2 million Americans will travel 50 miles or more to celebrate Independence Day. According to AAA, that’s 1.25 million more people than last year and the most people ever to travel over the holiday.

Most, 37.5 million to be exact, of the traveling Americans will drive to their destinations, and farmers can only hope they’ll be filling up their tanks with ethanol-enhanced fuel.

Fun Facts for the BBQ

In 2016, the amount of American flags imported to the U.S. were valued at $5.4 million and most came from China, according to the U.S. Census Bureau. The U.S. also exported enough American flags in 2016 to add up to a value of $27.8 million. Most of the flags, $26.1 million worth, were exported to Mexico.

Last year, the U.S. imported $296.2 million worth of fireworks from China.
Back in 2012, the 172 U.S. wholesalers sold $482.6 million worth of fireworks and firecrackers.
A particularly happy Independence Day to those celebrating in patriotic towns and counties like Liberty County, Texas; Patriot Town, Indiana; and Union County, Ohio! BY ANNA MCCONNELL.

WILL JULY CROP WEATHER CONTINUE TO BE A HEAD- SCRATCHER.

2017-07-02T18:34:00.001+01:00

As weather goes, so likely will prices.

This year’s weather has either been close to ideal or it has made for a stressful spring and start to summer. A very challenging spring (due to copious rains in parts of the Midwest) forced many farmers to replant corn and in some instances abandon acreage or switch to other crops. “Rain makes grain” is the old saying, and as July 4 approaches, it’s hard to complain if you’re lucky enough to have had a few rain events. For many, however, rain this year is something they could do without, at least for a while. If you planted early and your crop looks good, rain is welcome, in particular the western corn-producing states. For about a third of all corn producers, too much rain this year has created many challenges. Late planting and poor field conditions for spraying crops are two concerns, as more rains this past week suggest nitrogen leaching and shallow roots, both which could suggest lower yield.

The most recent crop ratings figures released by the USDA this past Monday indicated this year’s corn crop is rated as 67% good to excellent, down from last year’s 75%. With lower acreage (4 million less than last year) as indicated on the March 31 Acreage report and a higher amount of corn rated in the poor to very poor category compared with a year ago, it’s been a head-scratcher why corn prices lately have been on the defensive, losing more than 25¢. The “rain makes grain” mentality, along with increased farmer selling of old crop, are the likely two variables pressuring prices. As the end of the month approaches and cash contracts come due, farmers are determining whether to move inventory or roll contracts to another month. A limited amount of time to empty bins between now and harvest has created an environment where producers are likely deciding to get rid of old crop.

Despite recent downward price pressure, it’s too early in the growing season to be overly pessimistic on price. The chances that corn prices will move substantially lower, with what could be a less-than-ideal crop, are probably not good. End users will likely view the recent pulldown in corn prices as an opportunity to lock in longer-term needs. As weather goes, so likely will prices, and lately weather has not been ideal. The chances of price recovery are good. The critical months for crop growth and maturity are July and August. Attitude, as well as perceptions in the marketplace, could change in a hurry over the next 60 days.

If you have questions or comments, contact Top Farmer at 1-800-TOPFARM, ext. 129.
Futures trading is not for everyone. The risk of loss in trading is substantial. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Past performance is not necessarily indicative of future results. BY BRYAN DOHERTY.

DESPITE HAIL, PESTS, AND WEEDS, IOWA'S CORN AND SOYABEANS, LOOK REALLY GOOD.

2017-06-30T07:54:00.003+01:00

There aren’t many farmers who claim to “love all things related to weeds.” Luckily for farmers in Iowa, there’s a weed-loving Extension agent at the ready to help identify and tackle tough weeds. Meaghan Anderson has served as a field agronomist in east-central Iowa for the past two years. Last year, her enthusiasm and dedication helped farmers and landowners detect and manage Palmer amaranth infestations in pollinator plots and CRP plantings.

This year, Anderson is back in the fields, keeping an eye out for Palmer amaranth and other pests as well as evaluating hail damage. Here’s what she’s seeing in the corn and soybean fields of eastern Iowa.

Palmar amaranth was spotted in fields in Linn County as well as Muscatine County. “We’re just approaching the best time to identify Palmer amaranth, so I’ve only seen a few locations with it so far this year,” says Anderson. “I suspect the hot, drier weather we’ve had has been good for its development, so more identifications will happen this summer.”

Marestail also looks like it could be an issue this season, comments Anderson. “Farmers have reported having trouble managing marestail, so I’ll be monitoring populations,” she says. “I think some farmers may need to consider a fall herbicide application if the populations in their fields germinate in the fall.” In addition to weeds, hail has been another issue for growers in Anderson’s region. “Hail damage was spread over several counties, but the most significantly damaged area was mostly small and spotty in Linn County,” she says.

Overall, Anderson says the corn crop is off to a good start for 2017. “I thought corn seemed more uneven early and also had some armyworm issues, but most looks really nice now,” she says. “I don’t think anyone would object to some more rain as long as it doesn’t bring hail with it.” The counties she covers are 1¼ inches below the climatology rain average for June.

In Washington County, Anderson is also noticing a fair amount of urea burn from sidedress applications.

For soybeans, Anderson says some suffered from stand loss and damage from HG 14 herbicides used preemergence, pest feeding (armyworms and slugs), and crusting. “Most problems have been resolved at this point,” she says. “Corn and soybeans look really good after what seemed like a long planting season.”

According to the latest data from the USDA, 79% of Iowa’s corn crop is in good to excellent condition, on track with last year’s condition and up from the five-year average of 72%. Soybeans are trailing last year slightly with 74% in good to excellent condition compared with 77%, but still pacing ahead of the five-year average of 69%. BY JESSIE SCOTT.

U.S JUNE HOG HERD HIGHEST IN MORE THAN 50YEARS.

2017-06-30T07:44:00.002+01:00

CHICAGO, June 29 (Reuters) - The number of hogs on U.S. farms during the March-May quarter climbed 3.0 percent from a year ago, according to the U.S. Department of Agriculture report on Thursday, implying abundant supplies through the coming year.

Thursday's outcome was the largest on record for the period since 1964, maintaining a string of quarterly record highs dating back to March 2016.

Still, analysts viewed the data as neutral for Chicago Mercantile Exchange lean hog futures on Friday because the results were close to expectations.

Analysts attributed the herd expansion to improved producer profits, affordable feed and the need for more supplies to accommodate at least two new packing plants scheduled to come on line later this year.

A record number of baby piglets that survived during the quarter helped farmers to be more efficient and boosted herd sizes.

USDA's report showed the U.S. hog herd as of June 1 at 103.0 percent of the year-ago level or 71.650 million head.

The result topped analysts' average forecasts and was the most for the quarter since USDA began compiling data for the period in 1964.

Analysts, on average, had expected 71.597 million head, or 103.3 percent of the year-earlier herd.
The U.S. breeding herd was 102.0 percent of the year-ago level, at 6.069 million head, up from 5.979 million last year.

The average trade forecast was 6.069 million, or 101.5 percent of the previous year.
The June 1 supply of market-ready hogs for sale to packers was 104.0 percent of a year earlier, at 65.581 million head, up from 63.302 million last year. Analysts, on average, had estimated a 3.5 percent rise, or 65.490 million.

Allendale Inc chief strategist Rich Nelson called the record hog herd size "shocking," but said it would have no effect on the market. Industry observers for several months had expected record production and most of the results came in line with expectations, he added.

The industry will monitor whether two new hog plants will be operational by September to handle the massive supplies ahead, said Nelson.

"Any delays in the start of the two plants will be clearly taken as bad news by the industry," he added.
Bob Brown, an independent market analyst in Edmond, Oklahoma, agreed that the "numbers came in pretty much as expected - nothing outlandish."

Nearby CME hog futures will likely follow prices for market-ready, or cash, hogs and not focus on trading months further out associated with Thursday's report, said Brown. (Editing by Richard Chang). BY THEOPOLIS WATERS.

US INSPECTORS WILL MAKE SURE CHINESE CHICKEN IMPORTS ARE SAFE ,AGRICULTURE SECRETARY SAYS.

2017-06-28T22:08:00.001+01:00

US inspectors will make sure Chinese chicken imports are safe, Agriculture secretary says

Tight U.S. food inspections should give American consumers confidence in the safety of new Chinese chicken imports, Secretary Sonny Perdue says.

The Agriculture secretary is set to travel to China on Wednesday to formally mark the return of U.S. beef there after a 13-year hiatus.

Tight U.S. food inspections should give American consumers confidence in the safety of new Chinese chicken imports, Agriculture Secretary Sonny Perdue told CNBC on Tuesday.
In last month's trade agreement with China, the U.S. agreed to allow Chinese cooked poultry to enter U.S. markets in exchange for China bringing back U.S. beef imports.

"We're talking about cooked chicken," said Perdue, indicating uncooked chicken generally poses a greater food safety risk. "The good thing about it is our food safety inspection agency, in the USDA, does a marvelous job."

Perdue, a former governor of Georgia, also said Chinese chicken won't hurt American poultry producers. "I don't think there's really any fear of major chicken poultry protein coming the U.S."

The secretary, who is not related to the family that owns Perdue Farms, is set to travel to China on Wednesday to formally mark the return of U.S. beef to the Chinese market after a 13-year hiatus. China banned U.S. beef imports after the discovery of a case of bovine spongiform encephalopathy in Washington state in late 2003.

"Those concerns were not justified. I think it was a single animal that came from Canada that had the BSE, or the mad cow disease. And we felt like the suspension of imports from the U.S. was a difficult and wrong decision," Perdue said. "We've had no experience and no evidence of ... [ mad cow disease] in over 13 years." BY MATHE J BELVEDERE.